International Business Law Essay Example | Topics and Well Written Essays - 2000 words

International Business Law - Essay Example ase between Gupta and ACG, Gupta after receiving an invitation from ACG to purchase 10 MR5 computers is claiming a breach of contract on the part of ACG because of the latter’s action of selling the computers to a different buyer. In this regard, the following legal issues arise: first, was a contract concluded between the two involved parties? Second, was Gupta’s acceptance valid and has it been communicated to ACG. Third, was ACG’s revocation valid? Fourth, considering the aforementioned legal issues, is Gupta correct in claiming that ACG was in breach of contract? Hence, given that the aforementioned legal issues are concerned with the formation of contracts regarding the international sale of goods, the United Nations Convention on the International Sale of Goods (Vienna Convention) or Common Law can apply. In order to determine whether a breach of contract took place, one must determine whether a contract exists. For a contract to exist, however, it must be concluded through the valid acceptance of an offer (Art 14). In this regard, it is questionable whether the acceptance sent by Gupta was valid. Article 19  § 1 of the Vienna Convention states that â€Å"A reply to an offer which purports to be an acceptance but contains additions, limitations or other modifications is a rejection of the offer and constitutes a counter-offer.† In this respect, the words â€Å"on the assumption that† in the letter sent by Gupta questions the validity of the acceptance because it can be considered as a modification of the contract since there was no indication regarding the date or manner of delivery in the initial offer sent by ACG. Thus, since there was no contract formed because there was no valid acceptance; Gupta cannot hold ACG in breach of contract. In this regard, ACG’s revocation of the offer will hold. This rule is also similar to the rules under Common Law which states that acceptance of an offer must be communicated â€Å"according to the terms in which the